Retailers look to make gift cards more personal as sales climb

Sun-News report

Posted:
11/24/2012 02:40:29 PM MST

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Doug Jones, assistant manager of Walgreens on El Paseo, organizes gift cards Friday in the store. It's big money. We sell so many that it's ridiculous, Jones said. The top five sellers are: Olive Garden, Chili's, iTunes, Applebee's and Starbucks, according to Jones.

LAS CRUCES — Once considered gauche and impersonal, gift cards are now in demand.

The National Retail Federation reports that eight out of every 10 shoppers will buy at least one gift card this holiday season. In fact, the average shopper is expected to spend $156.86 on gift cards, the highest amount in the 10 years the NRF has been conducting a survey on gift cards.

Total spending on gift cards across the nation is expected to reach $28.79 billion.

Vince Vaccaro, owner of Lorenzo's Pan Am Italian restaurant on University Avenue, said about 40 percent of his annual sales of gift cards comes during the holidays.

Robert Elfinger with Walgreens said that the selection at Walgreens stores has grown through the years as gift cards became more and more popular.

"They're a very convenient gift people can provide," Elfinger said.

Shopper Branden Tidwell said he will buy gift cards depending on the occasion.

"It saves time and it's for convenience," he said on the Sun-News Facebook page. "The person can pick and choose what they want."

Consumers will spend an average of $43.75 on each card they buy, the NRF reports. As in previous years, men plan to spend significantly more on gift cards than women, shelling out an average of $172.98 compared to women's $141.

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"Gift cards are the perfect practical and personal gift, allowing the recipient to treat themselves to something nice, or even something they need," said Pam Goodfellow with BIGinsight, which conducts surveys for NRF. "Whether it's a mobile card that consumers can use whenever it's most convenient or one that includes video or audio, gift cards can still be extremely personal."

Shopper Christina Melendrez said she found a gift card helpful this year.

"I snooped around, asked different people in my family and still couldn't find something to get for someone in my family," she said. "So I got a Visa gift card as the Christmas gift."

Cheryl Graves, community relations manager for Barnes & Noble at the Mesilla Valley Mall, said that the company is offering an extra $10 gift card for customers who purchase at least $75 in gift cards.

"They're a really great stocking stuffer," Graves said. "Really, they're great for any occasion."

"Retailers are pulling out all the stops this year to make their gift cards personal, convenient and desirable," said NRF President and CEO Matthew Shay.

Shoppers just have to hope that the people they buy gift cards for actually follow through and use them.

Consumer Reports advises that 27 percent of gift card recipients have not used all of the available value of their cards. TowerGroup estimates that nearly $8 billion was lost last year due to unredeemed value, expiration or loss of gift cards.

Brook Stockberger may be reached at 575-541-5457; follow him on Twitter @Bstockberger

Gift cards

The percentage of shoppers who said they would buy a gift card from at least one of the following sources: